Search This Blog

Knowledge Partners

Posts

A Forbes article quotes Venture Intelligence data on PE/VC investments:
Venture Intelligence’s ‘Indian Private Equity Trend Report 2016’, on private equity and venture capital investments, shows companies based in Western India accounted for almost 40 percent of PE investments in value terms in 2015, while South India companies came next with a 32 percent share and those from North India finished third with 22 percent.Venture Intelligence is India's longest serving provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India.

An Economic Times article quotes Venture Intelligence data on PE/VC-backed IPOs
According to Venture Intelligence, about a dozen private equity and venture capital-backed companies have raised over $1.3 billion in IPOs between January and September so far. In the same year-ago period, a similar number of companies went public but raised about $621 million from the market.Venture Intelligence is India's longest serving provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India.

There have been 11 transactions worth $750 million involving NBFCs so far this year, according to data compiled by investment tracker Venture Intelligence. This follows $920 million that PEs invested in NBFCs last year.
In 2016, PEs have been able to sell investments in five deals worth $432 million, according to Venture Intelligence. It was $539 million across 11 deals in 2015. Why are PE firms chasing NBFC companies?

More excerpts from the article:
"Typically, it is considered a proxy for economic growth. PE funds believe that we are at the start of a four to five year good run in terms of economic growth. As a fund, they would want to enter and exit within the growth cycle... the delinquency is low. Margins too are better compared to wholesale lending businesses." - Sanjeev Krishnan, Partner(Transaction Se…

An Economic Times article quotes Venture Intelligence data in an article on exits by Sequoia Capital in 2016:
Software maker Quick Heal and small finance bank licence holder Equitas Holdings, which listed earlier this year, are estimated to have delivered returns of 3.5 times and 2.25 times respectively to the venture capital fund (Sequoia Capital) according to research firm Venture Intelligence.
Venture capital investment for the period January to September 2016, dropped to 285 deals, totaling $1.03 billion, compared to 390 deals, with a cumulative value of $1.6 billion, in the year ago period, according to Venture Intelligence. Exits were valued at $1 Billion, spread across 48 deals, compared to 41 transactions, estimated at about $1.4 billion in the year ago periodVenture Intelligence is India's longest serving provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India.

A Nikkei article quotes Venture Intelligence Arun Natarajan on SoftBank's journey in India:
"SoftBank is one of the very few startup investors willing and able to lay down hundreds of millions of dollars in a single go" said Arun Natarajan, CEO of research company Venture Intelligence.
SoftBank's former second-in-command, Nikesh Arora, helped lead the company's Indian strategy after coming aboard in 2014 and continued to do so until his departure in June of this year. But he was not the reason SoftBank came to India, according to Natarajan. "They were in India and continue to be around regardless of Nikesh Arora," he said.Venture Intelligence is India's longest serving provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India.

A mydigitalfc article quotes Venture Intelligence data on PE/VC Exits
Since 2014, there have been about 30 exits. The ongoing year has so far seen the highest exits — worth $686 million — in 12 companies, while there were 15 exits worth $287 million in 2015; there were four exits worth $109 million in 2014, according to data sourced from Venture Intelligence.Venture Intelligence is India's longest serving provider of data and analysis on Private Company Financials, Transactions (private equity, venture capital and M&A) & their Valuations in India.

A Mint article titled Multiples PE to venture into special situation investing quotes Venture Intelligence data on Investors and investments in the Distressed Assets field. (According to the article the gross bad loans of 39 listed Indian banks, in absolute terms, rose 92% in fiscal 2016 to Rs 5.79 trillion.)

Other global private equity funds such as KKR and Co., Hong Kong-based SSG Capital Management and International Finance Corp. (IFC), the investment arm of the World Bank, have already acquired stakes in existing ARCs to buy bad loans. In January 2015, IFC invested in Encore Asset Reconstruction Co. Pvt. Ltd and in March this year, the Foreign Investment Promotion Board gave approval to KKR & Co. for picking up a stake in International Asset Reconstruction Co. Pvt. Ltd.

In the last two years, the renewable energy space, especially solar and wind power, has seen a lot of private capital flowing in. Recently, Greenko, which is a developer of wind and small hydro power projects, secured $230 million from sovereign wealth funds of Abu Dhabi and Singapore.
Last year, emerging markets-focused private equity major Actis Llp also created a renewable energy platform under Ostro Energy with initial commitment of $230 million.

As reports of Startup Shutdowns & "Acqui-Hires" began to flood the media in 2016, Venture Intelligence did quick study of companies that had raised angel investments in the 2010-2014 period across Bangalore, Chennai, Mumbai and National Capital Region to check if there is a city flavour to these companies. On the flip side, there were obviously also companies that managed to raise successful follow-on financing or even deliver quick exits to their investors.

According to Venture Intelligence data, the failure rate among start-ups in Chennai between 2010 and 2014 was one per cent. The rates in Bengaluru and the NCR were six per cent and seven per cent, respectively.
Arun Natarajan, Founder, Venture Intelligence, said Chennai had higher resilience in the business-to-business (B2B) and software as a service (SaaS) businesses and that the city's start-ups had a clear focus on the business and revenue models. "Chennai does not follow the me-too concept," he said.
Bengaluru and the NCR have a head start in large enterprises and these cities have investor communities willing to experiment with new ideas. Investors in Chennai, on the other hand, are more conservative and bet on good ideas.Venture Intelligence is India's longest serving provider of data and analysis on Private Company Financials, Transacti…

A Mint article quotes Venture Intelligence data on PEVC investments in the Edtech space
According to data from Venture Intelligence, the ed-tech space has seen investments worth $169 million, across 17 deals, so far this year, compared to $68 million that was invested across 20 deals in 2015.
Further Reading:

A Mint articleshowcases Venture Intelligence data on Chinese and Japanese VC and Strategic investors in India:

"According to data collated by researcher Venture Intelligence, till 5 September 2016, there were seven investments made by Chinese investors as against six in all of 2015 and 18 deals closed by Japanese investors against 21 in 2015. Against a total of 27 deals this year with about four months left to go, there were 28 investments made by Chinese and Japanese investors in 2015.
However, there has been a decrease in the average deal size in 2016, specifically in the case of Japanese investors. While an investment commitment of $1870 million was recorded in 2016 through 21 deals by Japanese investors, it was just $138 million this year. On the other side, Chinese companies are still aggressive and making large investments. A total of $870 million has been invested by Chinese investors in Indian start-ups so far this year."Venture Intelligence is India's longest …

A Mint article showcases Venture Intelligence data on investments in Seed Companies in India:
"The largest was global private equity giant Blackstone’s $56 million investment in Nuziveedu Seeds Ltd in 2008, according to data from Venture Intelligence. Other significant investments in the space include Summit Partners’ $29 million in Krishidhan Seeds in 2010, $10 million by CLSA Capital Partners in Camson Bio Tech and $9 million in Ganga Kaveri Seeds by Samara Capital."

An Economic Times article quotes Venture Intelligence data in the consolidation of startups:
There were 28 M&A deals in the first eight months this year vis-a-vis 32 in the whole of last year, according to Venture Intelligence.
The article also quotes: Deepak Natraj, Managing Director, Aarin Capital
"It's a clear case of consolidation. In many cases, the target companies are sub-optimal businesses, not having enough capital to expand their business verticals." Anil Joshi, Managing Partner at Unicorn India Ventures
"Too many companies in the same space doesn't provide enough room for them to play. Also, the market is still nascent and not ready to absorb too many companies." Sujayath Ali, Co-Founder, Voonik.com
"The sweet-spot for any startup M&A deal is technology. Most deals are struck for want of technological capabilities." Related Stats:
In a study of Bridge rounds in India, Venture Intelligence identified
"More than 250 startups, …

A Knowledge@Wharton article quotes Venture Intelligence data while analyzing issues in the startup ecosystem in India:
"Venture Intelligence, a leading provider of data on private company financials, transactions and valuations, notes while from April 2014 to March 2016 there were around 29 acquisitions in the Indian tech startup space, from April this year to mid-August the number has shot up to around 40."
"Venture Intelligence also notes that in 2015, 16 VC-funded startups shut shop during the course of the year. In 2016, from January to July itself an equal number of startups have already folded up. These include Fashionara, PepperTap, Zippon and Murmur. Post July, shutdowns include Exclusively, a fashion portal which was acquired by Snapdeal last year, TaxiForSure which was acquired by cab-hailing app Ola last year, and online market place and classified portal Askme.com."
"...from January to June 2015, India saw PE investment of $7.31 billion across 373…

What exactly is a startup?
According to Y Combinator founder Paul Graham: A team of good people making something customers actually want and spending as little money as possible to do so.
According to Stanford Prof Steve Blank: A startup is an organization formed to search for a repeatable and scalable business model.
According to #StartupIndia (ie, DIPP) an entity will be identified as a startup.
1. Till up to five years from the date of incorporation.
2. If its turnover does not exceed 25 crores in the last five financial years.
3. It is working towards innovation, development, deployment, and commercialisation of new products, processes, or services driven by technology or intellectual property.
4. Provided that any such entity formed by splitting up or reconstruction of a business already in existence shall not be considered a 'startup';
Now, Business Line has interviewed entrepreneurs and VCs to get their personal definitions.